Profits significantly rise in main industries in Q2 report

Profits significantly rise in main industries in Q2 report

The Vietnamese securities sector displayed a divergent trend among key players during the second quarter of 2025. While leading firms like Techcom Securities (TCBS), SSI Securities Corporation, and VIX Securities achieved strong growth, companies such as FPTS, HSC, and Vietcap experienced substantial profit declines.

Highlights of the Q2 performance include:

• TCBS posted an after-tax profit of VND 1.42 trillion (approximately US$54.3 million), marking its highest quarterly profit ever. This represented a 32% increase from the previous quarter and an 8% year-on-year growth. For the first half of 2025, TCBS recorded VND 3.04 trillion in pre-tax profit, accounting for 53% of its full-year target.
• SSI Securities reported operating revenue of VND 2.91 trillion, up 30% year-on-year. Interest income from lending rose by 60% to VND 830 billion. Its after-tax profit was VND 923 billion, the highest in 14 quarters. For the first six months, SSI reported revenue of VND 5.02 trillion and after-tax profit of VND 1.74 trillion, both up 11% year-on-year.
• In contrast, firms like FPTS, HSC, and Vietcap suffered sharp profit declines, reflecting the uneven performance across the sector.

Vietnam's overall economy remained robust, with an estimated Q2 GDP growth of 6.3%, supporting the securities sector's dynamics. However, the market faced some cautious investor sentiment due to global monetary tightening and geopolitical risks. The sector's Q2 results were mainly supported by proprietary trading activities, but rising P/B ratios and volatile foreign investor behavior introduced short-term risks and contributed to mixed performance results.

Banks remained the largest contributor to total market profit, accounting for approximately 44% of after-tax earnings. Despite sector-wide revenue remaining flat, utilities reported outstanding net profit growth of 72% on-year in Q2, contributing around 12% to overall market profit growth. The logistics, export, and utility sectors were clear beneficiaries of favourable market and external conditions.

Other notable gainers in the banking sector include SHB, ABBank, NCB, and Kienlongbank, each posting significant profit growth. VietinBank overtook Vietcombank to become the most profitable lender in the sector during Q2, reporting a pre-tax profit of $483.9 million, a 79% increase on-year.

The non-financial sector led growth for the fourth consecutive quarter, with net profit rising 41.7% on-year in Q2. Construction and building materials emerged as a highlight, while textile and garment exports rose 10% on-year, led by the US market, EU, and Japan. Seafood exports also climbed 16.9% on-year, reaching $5.2 billion, thanks to solid demand from the US, China, and Japan.

Export-oriented firms and industrial real estate companies recorded impressive net profit growth of 153.6% and 63% respectively, despite being directly impacted by tariffs. Industry leaders like Hoa Phat Group, Vicem Ha Tien, Binh Minh Plastics, Tien Phong Plastic, and Bien Hoa Building Materials Production and Construction saw their net profits grow by 39%, 145%, 17.7%, and 35% on-year respectively.

Margin lending has emerged as the key growth engine for securities firms, with companies such as VIX Securities, SSI Securities, Saigon-Hanoi Securities, and VNDirect all posting strong income gains from this segment. However, Hung, director of sectors and stock analysis at VPBank Securities, noted a growing divergence in business performance across the banking sector, with some banks delivering better-than-expected results while others fell short of forecasts. He also pointed out that banks like Sacombank, MBBank, and MSB underperformed in Q2 compared to other banks in the sector.

In summary, while leading Vietnamese securities firms showed strong and record growth in Q2 2025 profits, the sector overall experienced clear disparities with some companies declining sharply, amid a complex macroeconomic and market environment.

• The divergent trend among key players in the Vietnamese securities sector, as seen in the second quarter of 2025, can be observed in the finance and business arenas, with leading firms such as TCBS, SSI Securities, and VIX Securities demonstrating robust growth, while companies like FPTS, HSC, and Vietcap witnessed substantial profit declines.
• In the midst of the robust Vietnam economy, driven by a Q2 GDP growth of 6.3%, the securities sector's dynamics were supported by strong proprietary trading activities, but the sector's Q2 results were also influenced by the rising P/B ratios, volatile foreign investor behavior, and uneven performance across the sector, as reflected in the business performance of companies like FPTS, HSC, and Vietcap.

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